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Report – Up to 140 UK retailers are in “critical condition”

Wednesday, 16th January 2013 16:59 GMT By Nick Akerman

Begbies Traynor, a business recovery firm, estimates that 140 UK retailers are currently in “critical condition”.

The news comes shortly after Blockbuster joined HMV on the administration list. Begbies Traynor wouldn’t reveal any of those in trouble, but it’s suggested a number of high-street brands are being outlined as “critical”.

“Experiences teaches us that a high proportion [on the critical list] will fall into some sort of insolvency proceedings,” Begbies Traynor partner Julie Palmer told The Guardian.

“Overall, the sectors that are most vulnerable include those affected by shoppers moving to online or digital formats, such as specialists in music, games, books, news and stationery along with the specialists that are most affected by the convenience and price-driven offering of the supermarkets, which includes chemists, health and beauty, and alcohol retailers.”

Numbers from RSM Tenon suggest 1,300 retailers filed for insolvency during 2012; a number that is going to get worse across the next year. Chris Ratten, the firm’s head of restructuring, said: “We expect this year to be worse, as those who have managed to teeter on the edge for the past few years will feel the full effects of the reduction of discretionary spending, fierce competition and reducing cash reserves.

“We believe 12,679 retailers have a high risk of insolvency out of more than 100,000 retailers nationally.”

Thanks to MCV for the heads up.

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10 Comments

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  1. DSB

    It’s not easy to find work as a lamplighter these days either.

    #1 2 years ago
  2. stevenhiggster

    I’ve been saying this for a long time, it makes me laugh when people said we were out of recession. People who do t work in retail have no idea how bad it is, in every sector. Many retailers have been suffering losses for years and have just managed to hold on through chopping and changing and scrimping, but that can only last so long.
    I know for a fact that my previous employer is on death row along with a fair few of its competitors in the furniture retail industry. I was made redundant last year in the first wave of store closures, more will follow.
    Luckily I now work for a much safer company but I’d say about 90% of people who work in retail are probably living in fear that they could lose their jobs very soon.

    #2 2 years ago
  3. theevilaires

    What the hell is HMV….sounds like a STD or something.

    #3 2 years ago
  4. DaveDogg

    @3 well back in the old days it was a record shop also tied to the record company His Masters Voice

    #4 2 years ago
  5. AHA-Lambda

    Bet the 2 near me in Glasgow are critical then.

    #5 2 years ago
  6. daytripper

    all those jobs, fuck, bad times

    #6 2 years ago
  7. theevilaires

    “His Masters Voice”

    Wow I would never shop at a place called that. No wonder he made it HMV :D

    #7 2 years ago
  8. monkeygourmet

    @7

    Sexist!

    #8 2 years ago
  9. theevilaires

    ^ Yea I got flagged for being a racist too for comments just like that :D

    #9 2 years ago
  10. brotherhoodofthewolf

    just wait until the end of the quarter, when the rent is due…

    #10 2 years ago